Home Equity Loan
Is it possible to do a deed-in-lieu of foreclosure on a HELOC?
My primary mortgage is with Chase; my home equity loan is with Countrywide. I am in default and trying to sell the house before the foreclosure happens but I don't know if it will happen. Today Countrywide told me that you can't do a deed-in-lieu on a HELOC but I am skeptical. I don't want to call Chase Home Finance and ask because they have been abusive and rude to me every time I've spoken with them.
Public Comments
- it is my understanding that the lender in first positon ( in your case is chase) would be given the deen in lieu of foreclosure as second deed (cw) is in second position and does NOT have authority over chase sorry you have to call chase
- Countrywide cannot answer for Chase. Countrywide is telling you this because if you make a deal with Chase they will be out their money. Even though they also have to agree to the transaction since they also have an interest in the property, they are holding out for a better pay-back on their share of the property. Best case scenario I see here is that Chase would accept a deed-in-lieu of foreclosure, then Countrywide would go after you for the full amount of the HELOC. You're gonna seriously damage your credit either way you go. You need to figure out how to talk with Chase, so you can work out something before it's too late. Good luck!
- The bank who is in first position would be the one who could accept a deed-in-lieu even tho both parties could start foreclosure proceedings. There is also an income tax liability that you want to take a closer look at too. These days, with the market being the way that it is, it sometimes makes more sense to work with your lender to modify your loan so that your payments are affordable and you keep the property. There are lots of factors to consider before they agree to modify your loan, but they have departments set up for just that. It also helps if you have a lender do the negotiations for you, since they know how to speak the language. Let me know if I can help but don't wait until it's too late.
- You need to find someone to represent you. This person will know how to get "abusive and rude" right back and possibly get what you want! Don't get bullied by big lenders.
